Decade break from pension contributions could see £90,000 loss - Aegon

'Sacrificing 'free money''

Sophie King
clock • 1 min read

Savers breaking away from pension contributions in their mid-20s could lose out on tens of thousands of pounds, research conducted by Aegon has found.

The analysis looked at the potential eventual losses to the pension pot of a 22-year-old, who joined a workplace pension scheme on an average starting salary of £20,000, if they decided to stop paying their pension contributions. It concluded that a break of 10 years could mean losing almost £100,000 (£91,600) of the total pension fund by state pension age. A break of one year could result in a loss of £7,000 of the total pension fund at state pension age and a break of five years could mean losing £42,100. Baby-boomers 'sleepwalking' into poor financial decisions Indeed, taking a ...

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